CFA个人呕心沥血总结的Level 1各章考点ethic

CFA个人呕心沥血的Level1各章考点ethicStudyNotesofStandardsandPracticeHandbook0.CodeofEthics·Actwithintegrity,competence,diligence,respect,andinanethicalmannerwiththepublic,clients,prospectiveclients,employers,employees,colleaguesintheinvestmentprofession,andotherparticipantsintheglobalcapitalmarkets.·Placetheintegrityoftheinvestmentprofessionandtheinterestsofclientsabovetheirownpersonalinterests.·Usereasonablecareandexerciseindependentprofessionaljudgmentwhenconductinginvestmentanalysis,makinginvestmentrecommendations,takinginvestmentactionsandengaginginotherprofessionalconducts.·Practiceandencourageotherstopracticeinaprofessionalandethicalmannerthatwillreflectcreditonthemselvesandtheprofession.·Promotetheintegrityof,andupholdtherulesgoverning,capitalmarkets.·Maintainandimprovetheirprofessionalcompetenceandstrivetomaintainandimprovethecompetenceofotherinvestmentprofessionals.I.ProfessionalismA.KnowledgeoflawB.IndependentandObjectivityC.MispresentationD.MisconductOffergift/benefit/compensationetc.tocompromiseindependenceisviolation.C&S(CodesandStandards)donotrequirereportingtothegovernmentregulatoryorganizationsforviolationsorCFAIforpotentialviolations(butit’sencouraged).AdvicesfromlegalcounseldonotabsolveM&C(MembersandCandidates)fromrequirementtocomply.Bestways:reporttosupervisor(firsttime),dissociate(ifnecessarylater).Companypaidtripshouldbestrictlyforbusiness.Modestgifts/entertainmentisOK,butshouldbecareful.GiftfromcustomerisOK,butallacceptedneedtobedisclosed.WorkingwithIBDisappropriateonlywhenconflictsareadequatelyandeffectivelymanagedanddisclosed.NocorporateissuershouldreimburseM&Cforairtransportation.Frequentmeetingshouldbepaidattentionto.Non-flatfeerelatedtosecurityperformanceshouldnotbeaccepted.FactualInformationfromrecognizedandstatisticalreportingservicesneednotbecited.Knowinglymeanseitherknowsorshouldhaveknown.ChartroomisalsoincludedincommunicationrelatedtoMisrepresentation.Ifperformanceguaranteeisbuiltintothestructureoftheproductitselforinstitution’sagreementtocoverloss,M&Ccantellcustomers.Authorandpublishershouldbothbementioned.Mustnotmisrepresentabilities.Oralcommunicationsshouldalsoavoidplagiarism.Misrepresentbyunintentionallyerrorisnotaviolation,butshouldbecorrectedandrelatedpartiesshouldbeinformedoncefound.Sourceofplain-languagesshouldalsobeacknowledged.Riskrelayingonsecond-handinformationshouldbeavoided-bestway:obtainacopyfromoriginalsource.MisconductisrelatedtoM&C’sprofessionallife,mostlyrelatedtodishonesty.Personalbeliefsusuallydonotcauseaviolation.Anywordslikeluxuryhigh-level,etcfromcompanyshouldbeaviolation.Reportingcanbetreatedasdissociation.Bothofferandsolicitbenefitisaviolation.Oralcommunicationcanalsoviolateplagiarism.Flightandhotelpaidbycoveringcompanyisacceptable.Governmentbondstillhaveinterestraterisk,soguaranteeshouldbecarefullyexpressed.II.IntegrityofcapitalmarketsA.MaterialnonpublicinformationB.MarketmanipulationMaterialnon-publicinformation:changeinauditorcertificationornolongerqualified;governmentreportsofeconomictrends(beforepublished).Lessreliable&moreambiguous,lessmaterial,Notnecessarytowaitfortheslowestmethodtodeliveryinformation.Awareofinformationselectivelydisclosed.Briefingorconferencecall/disclosetoonlyanalystcannotbecalledpublic.Guidanceorinterpretationofpublicinformationmaybematerial&non-public.Mosaictheory:shouldsaveanddocumenttheresearch.Reportoffamousanalyst(mayinfluencethemarket)isakindofmaterialnon-publicbeforepublished.“Lookingoverfirewall”needapproval.Sometimesprohibitiontoavoidusingmaterialnon-publiccantellout,atthistime,takeonlythecontrasideofunsolicitedcustomertrades.Failtopreventtransferandmisuseofmaterialnon-publicisaviolation.Iftheimpactofaninformationisunknown(suchasthedirectionofpricechangecannotbepredicted),itisnotconsideredmaterial.Unreliableinformationcouldnotbeconsidered.Marketmanipulation:Prices&Volume;Transactionbased&Informationbased.Transactionbased:manipulatethesecurityitself;manipulateaninstrumenttocontrolderivatives.Tradingfortaxpurposeisnotprohibited,suchassellingandimmediatelybuyingback.Usinginaccurate/misleadinginformationmaycausemarketmanipulating.Thebestactionwhenheardmaterialnonpublicinformationistopromotepublicdisclosure.Legaldisputesandgovernmenteconomictrendsreportcanbematerialnonpublicbeforedisclosed.Thedepartureofthefundmanagerisnotmaterial.Ifaclientwhohasmaterialnonpublicinformationmakesantradeorderbasedonthat,M&Cshoulddecline.III.DutiestoclientsA.Loyalty,PrudenceandCareB.FairdealingC.SuitabilityD.PerformancepresentationE.PreservationofconfidentialityTheclientofpensionplansortrustsisthebeneficiariesofthem.Clientswhoareunawareoftherecommendationchangeshouldbeadvisedbeforethecontraryorderaccepted.Determiningsuitabilityshouldbaseonthecharacteristicsofentireportfolio,notissue-by-issueanalysis.Votingproxiesshouldbemadesureaccordingtotheinterestsoftheclient,bothfailtovoteorvotetoomuchtosavecostmightbeviolation.Proxyvotingpolicyshouldbedisclosed.Ifuncertainofclientsaction,ask;ifindoubt,discloseinwrittenandobtainclient’sapproval.Terminatedaccountsshouldbeincludedinperformancepresentation.Deletinganassetfromrecommendationlistisalsoarecommendationchange.Illegalinformationofclientscouldberelayedonlytoproperauthorities.WhileCFAIinvestigatesclients’confidentialinformation,analystshouldoffer.Theclients’investmentpurposeisconfidential(evenforcharity).M&Cneeddisclosestrategy,butnotspecifictradesiftheyagreewithstrategy.Firmscanofferdifferentlevelsofservices(differentindepthbutnotpriority)aslongasthisisdisclosedtoallclients.Disseminatenewrecommendationsshouldbebasedonsuitabilityandknowninterest,notallclients.Limitthenumberofpeoplewhoareprivytothefactthatarecommendationisgoingtobedisseminated.Processexecutingordersinfirst-infirst-outorder(Don’tconfusewithinventoryaccounting).Disclosetradeallocationprocedures(itcanbeasymmetriconlyduetothedifferentneedofclients).Ifclientswithholdinformation,suitabilityanalystcan’tbecompletebutmustbedonebasedonprovidedinformation;thus,M&Careresponsibleonlyforassessingsuitability.M&Cwhomanagepooledassetstoaspecificmandatearenotresponsibletothesuitabilityofthesharepurchasers.Payattentionofthematerialchangesinclients’situationstoconfirmifthere’sanysuitabilitychange.ProvidingconfidentialinformationtoCFAI’sProfessionalConductProgram(PCP)isnotaviolation.Passingconfidentialinformationtoauthorizedemployees/colleaguesispermitted.Thewordequalisnotnecessaryinfairdealing,oritmayviolatesuitability.M&Ccannotbetheclientofhimself.Softdollararrangementisrequiredtobedisclosedonlyifitcausesconflictorpotentialconflict.Annualinquiryofclient’ssituationisrequired.Itisapplicablelaw,notCodeandStandardthatdecideswhetherillegalactivityofclientshouldbereportedtoauthorities.Authorizedfellowemployeecanbedisclosedconfidentialinformation.Onlypro-rataallocationofIPOispermitted.Sittingintheboardshouldbedisclosedtobothemployerandclients.Generallyofferingtodoaclient’sinformationupdatethroughmailisnotsufficienttocomplywithSuitability.Arecommendationlistcanbesentwithoutregardtosuitability.Softdollarmustbeusedforthebenefitofclients,butisnotrequiredfortheexactclient.ChargingdifferentfeeforsameserviceviolatestheFairDealing.Asksomeonetohelpto“introduce”non-completeorbiasedperformanceisaviolation.IV.DutytoemployersA.LoyaltyB.AdditionalcompensationarrangementsC.ResponsibilityofSupervisorsTheclients’investmentpurposeisconfidential(evenforcharity).It’snotrequiredtoputemployer’sinterestsaheadoffamilyandotherpersonalobligations;itshouldbediscussedandbalanced.Withnon-competeagreementabsence,S&Mcancontactoldclientsifnotusingcontactlistfromoldemployeebutthememoryhimselforpublicinformation.Acceptingadditionjobswithnoconflictwithemployeedonotneedpermission.Supplemental&contingentcompensationarrangementfromclientsshouldbereportedinwrittentoemployerandobtainconsent.Whilecompanyhasnopropercomplianceprocedures,M&Cshoulddeclinesupervisoryresponsibilityinwriting.Evenrejectedmaterialisthepropertyoftheemployer.Theadditionalcompensationfromclientsshouldbedisclosedtoemployer,butthedisclosuretootherclientsisnotM&C’sduty.CheatingtheemployerisnotrelatedtoDUTYTOEPLOYER.Acceptingadditionalcompensationshouldbedisclosedtoandobtainwrittenconsentfromallpartiesinvolved.Delegationofsupervisoryresponsibilitydoesnotrelievethedutyofsupervisor.Ifappropriatecodeandactionfailedtostopviolation,thesupervisorisnotinviolation.Onceaviolationisdiscovered,supervisorshouldincreasesupervisionorplaceappropriatelimitationonthewrongdoer.Afterterminationformtheemployer,solicitingclientsisnolongeraviolation.CEOisnotnecessarytobethesupervisoroftheemployee.Undertakingindependentpracticeisrequiredtodiscloseandobtainwrittenconsentonlyto&fromemployer.Thepreparationofindependentactivityorleavingtheemployerisnotrequiredtobedisclosed.V.InvestmentAnalysis,Recommendations,andActionA.DiligenceandreasonablebasisB.CommunicationwithclientsandperspectiveclientsC.RecordretentionIfamemberdoesnotagreeagroup’sviewswhichhavebeenworkedoutinreasonableprocedureandbase,hedoesnotnecessarilyremovehisnamefromthereport,buthavetodocumentanotice.Byperiodicallycheckingthereasonablebase,third-partyresearchcanbeusedforinvestmentrecommendation.M&Cmustkeepexistingclientsinformedwithrespecttochangestothechoiceofinvestmentprocessonanongoingbasis.Withoutotherstandards,CFAIrecommendsatleast7yearsofRecordRetention.Whileworkinginnewcompany,M&Ccanrecreatemodelsusedbeforebyonlyknowledgeandrecreatesupportingdocumentsatthesametime.Usingtheresearchresultofthefirmisnotlackofdiligenceandreasonableunlessthere’sareasontobelievethebasisisquestionable.Detailedinformationmustbeavailable(andavailabilitydisclosed)whilebriefrecommendationisoffered.VI.ConflictsofInterestA.DisclosureofconflictsB.PriorityoftransactionsC.ReferralfeesConflictscanbeexistbetweenclients,employerandself.Powertovoteordirectthevotingisakindofinterest.Specialcompensationfromemployermightbeconflictwithclient’sinterest,shouldbedisclosed.Disclosemustbemadeprominently,onlydiscloseinfootnoteisnotenough.Onlywhentheinvestmentdecisionthatcausesconflictisdeterminedshouldthedisclosurebemade.Thereshouldbeblackoutperiodspriortotradesforclientstopreventmanageoffrontrunning.Jobofferorpotentialisakindofconflictsource.Thebeneficialowningofsecuritybyimmediaterelativeisaconflict,butnon-immediateisnot.VII.ResponsibilitiesasaCFAIMemberorCFACandidateA.ConductsasM&CintheCFAprogramB.ReferencetoCFAI,theCFADesignation,andCFAProgramCheatinginanyexaminationisaviolation.ExpressingopinionorbeliefsconcerningCFAIorCFAprogramisnotinhibited.UsingCFAcommitteepositiontobenefitselfisaviolation.MembersmustsignPCS(ProfessionalConductStatement)&payduesannually.CFArelatedsignmustusedeitherafterthenameorasadjectives(notnouns).M&Chavetherighttoexpresshis/heropinionofCFAandCFAplanevenifit’snegativeopinion.AnnualconductreportisanobligationofMembers.“Highestethicalstandard”ispermittedtodescribeCFA.